# Some U.S. ethanol producers reduce production to sell natural gas for a profit

> Ethanol margins in the Corn Belt fell to negative $3.92 a gallon, the lowest since at least 2010, according to Refinitiv data. Natural gas prices hit multi-year highs during the cold snap, prompting some producers to cut ethanol output and sell their gas for a profit.

- Date: 2021-02-16 · published 2021-02-16T12:00:00.000Z
- Category: weather · region US · magnitude medium
- Page: https://feedsoft.ai/events/48631-some-u-s-ethanol-producers-reduce-production-to-sell-natural-gas-for-a-profit
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md), [Natural Gas](https://feedsoft.ai/c/NATGAS.md)

## Why it matters

Lower ethanol output reduces corn grind and DDGS production, which is bearish for corn and DDGS prices. Higher natural gas costs raise processing expenses and support natural gas prices.

## Read by commodity

- CORN: bearish ▼
- DDGS: bearish ▼
- NATGAS: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2026-02-18 | [Top DTN La Nina to El Nino Analog Years Show Large US Corn Production](https://feedsoft.ai/events/20519-top-dtn-la-nina-to-el-nino-analog-years-show-large-us-corn-production.md) | +0.2% | +5.7% |
| CORN | 2020-07-28 | [Another good wet agricultural season predicted for SA \| OFM](https://feedsoft.ai/events/52039-another-good-wet-agricultural-season-predicted-for-sa-ofm.md) | -1.3% | +2.8% |
| CORN | 2023-05-16 | [U.S. weather, Brazilian production slashes grain prices](https://feedsoft.ai/events/5014-u-s-weather-brazilian-production-slashes-grain-prices.md) | +0.5% | -0.2% |
| CORN | 2019-03-26 | [ADM says U.S. floods to cut into Q1 operating profit - Grainews](https://feedsoft.ai/events/60129-adm-says-u-s-floods-to-cut-into-q1-operating-profit-grainews.md) | -3.7% | -4.9% |
| CORN | 2026-06-07 | [Ethanol exports a bright spot as corn suffers early summer slide - Pro Farmer](https://feedsoft.ai/events/10645-ethanol-exports-a-bright-spot-as-corn-suffers-early-summer-slide-pro-farmer.md) | -0.9% | +0.5% |
| NATGAS | 2021-02-12 | [Record cold brings a windfall for small U.S. natural gas producers](https://feedsoft.ai/events/5581-record-cold-brings-a-windfall-for-small-u-s-natural-gas-producers.md) | -9.6% | -39.2% |
| NATGAS | 2026-01-23 | [Natural-Gas Prices Soar as U.S. Braces for Arctic Blast - WSJ](https://feedsoft.ai/events/4760-natural-gas-prices-soar-as-u-s-braces-for-arctic-blast-wsj.md) | -2.8% | -52.5% |
| NATGAS | 2022-01-03 | [U.S. natural gas prices rise as cold freezes wells \| Reuters](https://feedsoft.ai/events/43321-u-s-natural-gas-prices-rise-as-cold-freezes-wells-reuters.md) | +2.6% | +37.9% |

## Sources

- reuters.com: https://www.reuters.com/article/us-usa-biofuels-ethanol/some-u-s-ethanol-producers-reduce-production-to-sell-natural-gas-for-a-profit-idUSKBN2AG217/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.